As you continue to grow your IT services firm you may be considering the possibility of expanding through a merger or an acquisition.
Even though a merger or acquisition is one of the most unnatural acts in business, finding the right IT firm to merge with or acquire can be a game-changer, opening up new avenues of growth and enhancing your competitive edge.
Here are the top three strategies to finding other IT services firms to pursue.
- Networking Inside of the IT Channel: Networking is a powerful tool for connecting with other professionals in the IT services industry. Attend industry conferences and trade shows to meet like-minded individuals and explore potential opportunities for collaboration. Engage in conversations, build relationships, and leverage your network to discover potential merger or acquisition targets.
- Professional Associations and Channel Communities: I feel like there’s a million associations, peer groups, and communities in the IT channel to leverage in finding other firms to merge with/acquire. We’re part of the IT Nation Evolve peer groups, and that’s certainly a good place to start. Other associations and communities specific to the IT services industry can provide valuable insights and connections. Participate in forums, discussion groups, and platforms where IT professionals gather because these communities can be excellent resources for discovering firms that may be open to M&A conversations.
- Collaborate with Valuation and M&A Consultants: Engaging with M&A consultants like iT Valuations can streamline your search process because we specialize in this. We live, eat, and breathe valuations and M&A. The best M&A consultants also have access to a vast network of buyers and sellers to help identify suitable targets based on your criteria. Their expertise can also assist in evaluating the financial, operational, and cultural compatibility of potential merger or acquisition targets.
Before you take any steps to identify potential buyers or sellers, be SURE you have a valuation done so you know how much you can afford, how to pay for it, and the return long term.
You also need to determine your core values as you progress in finding a firm to merge with or acquire because culture fit is the most important criteria in a successful M&A transaction. If there’s not a culture alignment between your IT firm and the one you want to partner with, then everything else will sour.
Whether you’re looking for your value drivers, how to maximize your value, or entering into the phase of life where you want to sell or acquire – we’re here for you. Get started by completing this form or email me at reed@itvaluations.com.